Income is regularly a worry with Bankruptcy, so I would like to talk you through some of the factors to consider around income and Bankruptcy
Bankruptcy in Emerald is always going to be complex and frustrating, especially because it includes money and people’s livelihoods. People always ask us how bankruptcy will influence their income, because bankruptcy is going to restrain just how much you can make. When it comes to Bankruptcy it is usually going to consider your overall income and the number of dependants that you have
How is this calculated?
You ought to know about Bankruptcy that there are actually set amounts that you may earn– yes, this suggests that you can not be left broke, but neither does this mean that you might be earning a six figure salary and not be paying back insolvency debt.
Net income is the pre-tax/ in the hand amount you earn each year.
A dependant is somebody who lives with you and earns no more than $3,124 per year (regardless of their age).
Can this be increased?
Yes, under some situations you can get a hardship variant that brings up the threshold amount, if you have financial obligations in Emerald like health-related, childcare, considerable travel to and from work, or a circumstance where your partner used to be employed but is no longer able to assist the household income level.
Could my boss be informed about this?
No, the benefit about Bankruptcy is that your employer will not be notified when you file for bankruptcy.
What about child support?
Child support is always taken into consideration in insolvency– this means that if you receive child support, that is not factored in as earnings. Having said that if you pay child support this will be often obtained from your net income sum, for example if you provide $5,000 child support yearly and you have no dependents residing with you then your altered net income limit will be $55,332.10.
What about tax-time, do I still get cash back?
If one of your creditors is the ATO (for unpaid taxes), then your tax refund will likely be taken by the ATO while you are insolvent to chip in towards your tax debt. If you don’t have a tax debt then you will retain your tax return as long as that doesn’t take you over your threshold income level caps.
So what is regarded as income?
There are a lot more concerns surrounding earnings and Bankruptcy– even more so because so many people will suggest with what is thought of as ‘income’- if you’re not exactly sure, it’s a great idea to get expert insolvency advice in Emerald.
Easily one of the most crucial things about Bankruptcy is that you must get suggestions as quickly as possible because it will guarantee you are taking the correct path. It is generally going to be best to be over prepared because when it comes to Bankruptcy knowledge is power, and once you have filed the documentation it’s far too late to change your mind.
If you believe when it comes to Bankruptcy, your circumstance is more detailed than what is touched on above, then I would strongly advise that you get professional guidance in Emerald.
If you wish to learn more about what to do, where to turn and what concerns to inquire about with Bankruptcy, then don’t hesitate to call Bankruptcy Experts Emerald on 1300 795 575, or explore our website: www.bankruptcyexpertsemerald.com.au.